Business

Materials’ price rise squeezes SME builders

Published

7 years ago

May 3, 2018

Price up: Building material price is harming SMEs

MORE THAN half of small building firms say that rising material prices are squeezing their margins and the same percentage have had to pass these price increases onto consumers, according to the latest research by the Federation of Master Builders (FMB).

Small and medium-sized (SME) building firms were asked which materials are in shortest supply and have the longest wait times. The average results were as follows (in order of longest to shortest wait times):

Bricks were in shortest supply with the longest reported wait time being more than one year;
Roof tiles were second with the longest reported wait time being up to six months;
Insulation was third with the longest reported wait time being up to four months;
Slate was fourth with the longest reported wait time being up to six months;
Windows were fifth with the longest reported wait time being more than one year;
Blocks were sixth with the longest reported wait time being up to four months;
Porcelain products were seventh with the longest reported wait time being more than one year;
Plasterboard was eighth with the longest reported wait time being up to two months;
Timber was ninth with the longest reported wait time being up to two months;
Boilers were tenth, with the longest reported wait time being more than one year.

SME building firms were also asked by what percentage different materials have increased over the past 12 months. On average, the following rises were reported:

Insulation increased by 16%;
Bricks increased by 9%;
Timber increased by 8%;
Roof tiles increased by 8%;
Slate increased by 8%;
Windows increased by 7%;
Blocks increased by 7%;
Plasterboard increased by 7%;
Boilers increased by 7%;
Porcelain products increased by 6%.

The impact of these material price increases includes:

More than half of construction SMEs (56%) have had their margins squeezed, this has gone up from one third (32%) reporting this in July 2017;
Half of firms (49%) have been forced to pass material price increases onto their clients, making building projects more expensive for consumers, this has gone up from less than one quarter (22%) reporting this in July 2017;
A third of firms (30%) have recommended that clients use alternative materials or products to those originally specified, this has gone up from one in ten reporting this in July 2017;
Nearly one fifth (17%) of builders report making losses on their building projects due to material price increases, this has gone up from one in ten reporting this in July 2017.

Brian Berry, Chief Executive of the FMB, said: “Material prices have rocketed over the past year. The reason for this could include the impact of the depreciation of sterling following the EU referendum still feeding through. High demand due to buoyant international markets could also be contributing to price increases. What’s particularly worrying is that when prices have increased mid-project, almost one fifth of builders have absorbed the increase and therefore made a loss. Also, if material price increases weren’t enough of a headache for building firms, they are also experiencing material shortages with wait times ticking up across a range of materials and products. Worst case scenarios include firms waiting for more than one year for a new order of bricks.”

Berry continued: “The rise in material prices is not just a problem for the country’s construction firms – it is also a problem for home owners. Half of firms have been forced to pass these price increases onto their clients, meaning building projects are becoming more and more expensive. This problem has worsened recently with more than twice as many firms passing material prices on to their clients now compared with nine months ago. What’s more, home owners should be prepared to have to use alternative materials or products to their first choice. One third of firms have recommended that their clients should use alternative materials or products to those originally specified. Now more than ever, it’s important that builders and their clients keep the lines of communication open in order to stay within time and within budget. Specified products or materials may need to be swapped for alternatives or clients will need to accept the additional cost.”

Berry concluded: “We are calling on builders merchants to give their customers as much advance warning of forthcoming material price increases or wait times as possible so that firms can warn their customers and plan ahead. We are also advising builders to price jobs and draft contracts with these material price rises in mind. The FMB’s latest State of Trade Survey shows that almost ninety per cent of building firms are expecting further rises over the next sixth months. This makes quoting for jobs difficult but if builders flag the issue to their client from the outset, and include a note in the contract that prices may be subject to increases, they shouldn’t be left short. What we don’t want is for the number of building firms making losses on projects to increase as this could result in firms going to the wall. A large number of collapsing construction companies will have a terrible knock-on effect in the wider economy.”

Business

Much-loved Narberth restaurant Madtom closes and goes on the market

Published

14 hours ago

June 14, 2025

Tom Sinclair

A POPULAR restaurant in Narberth has closed its doors and is now up for sale.

Madtom Land & Sea, known for its fresh seafood and highly rated dining experience, announced the closure this week, bringing an end to six years of trading in the bustling Pembrokeshire town.

The team behind Madtom shared the news on social media, saying the decision had been made “with a heavy heart” and that it was “time to slow down a little, gather our thoughts and focus on the next chapter.”

The restaurant, which boasts more than 300 Tripadvisor reviews and a near-perfect Facebook recommendation rating, has now been listed for sale. Interested parties are encouraged to get in touch to arrange viewings.

The statement thanked customers and staff, saying: “Thank you to everyone who has supported us over the past six years, and to our fantastic team—we couldn’t have done it without you.”

The announcement prompted an outpouring of messages from loyal customers and locals.

Kevin Clarke wrote: “Amongst the best dining experiences in Pembrokeshire. Good luck for the next chapter.”

Sue James-Davies said: “Very sorry you are closing but wish you all the very best for the future. Narberth won’t be the same without you.”

Caroline Husecken added: “So sad that you have closed—you will be so missed by us all in Narberth. You have been a huge asset to the town.”

The business is currently being marketed via private enquiry.

Business

Specsavers founder awarded CBE in King’s Birthday Honours

Published

18 hours ago

June 14, 2025

Tom Sinclair

CO-FOUNDER and Chair of Specsavers Doug Perkins, has been made a Commander of the Order of the British Empire by His Majesty King Charles in this year’s Kings Birthday Honours List, for his services to business and trade.

Specsavers was formed by Doug and his wife Dame Mary, from Carmarthenshire, in 1984 and is now the largest private eye and hearing care provider in the world, winning global recognition for its famous ‘Should’ve Gone to Specsavers’ strapline and humorous approach to marketing. As well as an innovative approach to pricing and advertising, Doug applied a pioneering joint-venture partnership model to the optical industry. Each Specsavers business, which now number more than 1,000 in the UK alone, is part-owned and managed by its own directors, who are shareholders, supported by a comprehensive supply chain and specialists in various support offices, providing services such as marketing, accounting and IT.

Doug has always been very much involved with the day-to-day running of the business and is passionate about innovation and clinical excellence. He spearheaded the rollout of OCT scanners in all Specsavers stores and continues to champion the role optometrists and audiologists play in supporting the NHS and delivering healthcare in the community.

‘I can’t tell you how honoured I feel to receive this award for services to business as I have dedicated my entire career to helping people to see and hear more clearly. But more importantly, this is recognition for the 45,000 people around the world who work for Specsavers and for our ophthalmic surgery business Newmedica and their dedication to changing people’s lives through better sight and hearing,’ he says.

‘Together, we have achieved so much since we started this business more than 40 years ago from pretty humble beginnings and it’s really quite incredible that we are now offering our services to more than 48 million people, as far afield as Canada and New Zealand, and have a robust supply chain that spans the world from the UK and Europe to Asia Pacific. None of that could have been achieved without loyal, hardworking, visionary colleagues and partners. My wife Mary and I recognised from the very beginning, when we started the business together, that we needed to surround ourselves with people with the right skills to propel as forward if we were to achieve our goals of offering value for money and experts who truly care.’

Born in Llanelli, Wales, in 1943, the son of a police sergeant and a farmer’s daughter, Doug has been industrious from a young age and had jobs as an errand boy, laundry delivery driver and assistant at a local chemist. He credited this experience as instilling in him the value of hard work and inspiring in him a passion for healthcare and retail.

Doug qualified as an optometrist from Cardiff College of Advanced Technology in 1965 where he met Mary Bebbington. Together they founded Bebbington and Perkins Opticians, which they sold in 1980 before moving to the island of Guernsey to be closer to Mary’s parents, who had retired there. Doug still goes into the Guernsey office every day and travels extensively to support business growth and the industry sector as a whole.

‘I am just as passionate now as I ever was about the future of optometry, ophthalmology and audiology, as well as further opportunities and expansion of the Specsavers group, which includes our Newmedica eye hospitals in England. Improving access to expert eye and hearing care for everyone, regardless of their circumstances or where they live, has been and will continue to be our driving force and I have no intention of retiring as long as I can continue to be useful to that cause,’ he says.

The company was put into a family trust some years ago to ensure that it would continue to operate under the Perkins stewardship and prevent it being sold into private equity. It remains very much a family business, with son John Perkins as CEO and four of their seven grandchildren already very much involved in the organisation.

Business

West Wales Holiday Cottages celebrates 20 years of success

Published

1 day ago

June 13, 2025

Tom Sinclair

Tourism firm marks milestone with community celebration in Cardigan

WEST WALES Holiday Cottages marked two decades in business last week with a special anniversary event that brought together cottage owners, local partners, and tourism supporters from across the region.

The event, held at the popular Pizza Tipi venue in Cardigan, was an opportunity to reflect on 20 years of championing independent stays and promoting tourism across Ceredigion, Pembrokeshire, and Carmarthenshire.

Founded in 2005 as a small family-run business, the company has grown from managing a handful of properties to showcasing almost 600 holiday cottages across West Wales.

Managing Director Lisa Stopher said: “We are so proud of our achievements over the last 20 years. We started with just a few cottages and now offer something for everyone. Some of our owners have been with us since the very early days, which is a testament to the fantastic team we have on board. We have exciting plans for the future and look forward to welcoming guests to West Wales for many more years.”

Guests at the celebration enjoyed food, conversation, and speeches highlighting the firm’s growth and impact on the region’s self-catering industry.

The company has played a significant role in supporting independent tourism and boosting the local economy by connecting visitors with unique places to stay across some of Wales’s most scenic landscapes.